New FHA Condo Guidelines

 

Effective February 1, 2010, The Federal Housing Administration (FHA) has changed the condominium approval process, which may affect your home buyers who are interested in using an FHA loan to purchase a condominium. These changes will speed up approvals in many cases. In addition, although some rules for property eligibility have been tightened up, others have been loosened to increase the number of properties eligible for FHA financing.

 

Highlights of the changes for 2010 include:

 

·         Faster approvals. The new process for internal lender approval (DELRAP) could reduce the approval time significantly for most new and existing condominiums, although it may take longer in some cases.

·         Elimination of spot approvals. Condominiums will receive a decision on the whole project or legal phase rather than individual units.

·         Approvals no longer needed for detached condominiums. Your buyers will be able to apply for financing under single family home requirements.

·         Changes in property restrictions. Changes in some requirements will make more properties eligible for FHA financing. Other changes increase restrictions on guidelines such as investor ownership and status of condominium fees.

 

Please contact your personal Bank of America Home Loan Officer if you need any information or have any questions about these changes. Together, we can communicate this information, set appropriate expectations and help ensure timely closings for your home buyers.

 

CURRENT RATE TRENDS AS OF 3/18/2010:

30-Year Fixed (with 1 point)        4.750%

15-Year Fixed (with 1 point)        4.250%

 

Have a wonderful weekend! 917-1893 www.troyott.com

 

  

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers. http://www.federalhousingtaxcredit.com/index.html

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